Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data
ITM Power issues profit warning amid delays to new 'stack'
ITM Power issues profit warning amid delays to new 'stack'
The company had said in its final results that it was making “encouraging technological progress” with the development of the 2MW MEP 2.0 stack, but said on Thursday that due to manufacturing issues including delays in finalising the tooling and testing of the stacks, it now expected that full-year output and revenue was likely to be towards the bottom of the current guidance range.
It said the timing of this revenue will be weighted towards the final quarter of the current financial year, and would be dependent on the success of the current work to resolve the issues.
The previously announced range was for between 48MW and 65MW of delivered product, and revenue of £23m to £28m.
“These production issues have resulted in limited deliveries of new, first of kind product which in turn has meant only limited field data for performance to assess the level of warranty provisions,” the board said in its statement.
“As a consequence of the limited field data, the warranty provision for these next generation contracted products will need to materially increase from the current level of £3m at 2022 year-end, and may result in a revision to EBITDA loss guidance.
“The accuracy of the product warranty provision will improve as more field data is acquired.”
ITM said it was “evolving technology”, and by its nature created “inherent uncertainty”.
“The board is aware of the potential risk associated with the growing and uncertain levels of warranty provisions and is seeking to mitigate this portfolio risk.
“As a result, the company expects there may be delays in finalising contracts in the final stages of negotiation which could place large scale projects at risk of deferred financial close.
“The company remains fully committed to the successful delivery of the order backlog and is working closely with customers to get projects finalised.”
ITM Power said it was benefitting from a “strong” balance sheet, with current cash of about £320m, and had an increased focus on operational cash and cost management.
“Taking into account the committed capital expenditure, a lower level of inventory build, and cost control the year end cash forecast is expected to be £240 to £270m.
“The search for a new chief executive officer is progressing well,” the directors added.
At 1050 BST, shares in ITM Power were down 31.46% at 71.72p.
Reporting by Josh White for Sharecast.com.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.